Dasvidania. McDonald’s leaves, sells its fast food outlets and bids farewell to Russia: the yellow “M” on a red background, symbol of a western lifestyle that had landed in the USSR at the time of perestroika, will disappear forever from the streets of Moscow, St. Petersburg, from The Life of the Russians. The war in Ukraine and aggression that is “not compatible with our values” are to blame, explains the giant of the Big Mac and french fries not far from another announcement that is shaking the markets: Renault’s decision to sell all of its assets to the for sale Russians, in an operation that effectively results in Moscow nationalizing the French automaker’s assets.
Two moves, announced in a way. McDonald’s had already lowered the shutters of its 850 restaurants in Russia early in the conflict, when most western brands decided to boycott Putin’s aggression and leave the land of the tsars. The final exit from the scene, operationally still in the preliminary phase, now envisages the sale of the fast-food restaurants (approx. 80% ownership, the rest in franchising) to a Russian buyer. Few details – except that the operation will cost the American chain between $1.2 billion and $1.4 billion in losses – but an indiscretion is already circulating: instead of the brand with the stars and stripes, “Zio Vanya” could arrive, with a logo , which is very reminiscent of the infamous arches. It would be the “V” of Vanya, a character written in Cyrillic, always in red and yellow, which in reverse looks very similar to the “M” of MacDonald’s cousins.
The global fast-food giant – which employs over 60,000 people in Russia – was punished by markets, with the stock trailing over 1% at the New York opening. A loss more or less similar to that of Renault, which started trading in Paris this morning down 0.7%.
The French carmaker’s operations are well advanced, albeit not fully complete. The announcement came from Moscow, with a note from Putin’s trade ministry: “Agreements have been signed for the transfer of Russian assets from the Renault Group to the Russian Federation and the Moscow government.”
The Russians take over 100% of the local subsidiary of Renault and Nami (the central research and development institute for cars and engines, run by the Russian state) acquires 67.69% of Avtovaz – the factory of the famous “Ladà” of the Togliatti factory on the Volga – by the Boulogne-Billancourt car manufacturer. However, the door to the future remains open. In fact, the agreement provides for a buyback option for Renault (15% in the hands of the French state) of its stake in Avtovaz, which can be exercised under certain conditions over the next six years. Also because the operation is difficult: there is no other option to leave Russia, and for this transition the French will only collect two symbolic rubles, one for each of the two sales – according to the first rumors of the Financial Times.
“We made a difficult but necessary decision. We are making a responsible choice towards our 45,000 employees in Russia, preserving the Group’s performance and our ability to return to the country in a different context in the future,” said Renault CEO Luca de Meo.
Two difficult goodbyes, however you read them. They mark the end of an era and the beginning of a new one with an uncertain future. As the words echoing from Moscow of those who spent happy hours in these McDonald’s testify: “For us Moscow children, Happy Meal was a reward for being good…”.
© All rights reserved